VESUVIUS IN THE FOUNDRY INDUSTRY

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Image: Foundry filter

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Image: Foundry sleeve

The Foundry division has two principal product lines: Foundry Technologies and Fused Silica.

Foseco, the Foundry Technologies business of Vesuvius generating 32% of total Group revenue, is focused on the global foundry industry which produces castings used in a wide variety of engineered products. Some 40% of castings (and a similar percentage of the revenue for the Foundry Technologies product line) is produced for the vehicle sector, comprising approximately 25% for cars and light trucks ("automotive") and 15% for heavy trucks. Other end-markets for foundry castings include construction, agriculture, mining machinery, power generation equipment, railroad and general engineering. Foseco is a world leader in the supply of consumable products and services to the foundry industry. These products typically represent less than 5% of a foundry's production cost, but contribute significantly to improving both product quality and manufacturing efficiency whilst reducing the environmental impact of the casting process. Customers of the Foundry division include the world's major automotive OEMs, truck producers and manufacturers of construction, railroad and mining equipment. The foundry market is highly fragmented and Vesuvius' 15 largest foundry customers represented 12% of the division's revenue in 2012.

Potential revenue per customer and per tonne of casting produced is strongly influenced by the technical sophistication of the casting and the process used in its production. These factors tend to correlate with the level of industrial development of the market and therefore Vesuvius sees significant growth opportunities as industrial development occurs in certain parts of Eastern Europe and Asia.